Tradegate Exchange successfully Launched as Regulated Exchange
Increase in trading activity on the first few days of trading this year/ Deutsche Börse finalizes acquisition of majority interest
Deutsche Börse: Since the start of trading in 2010, yet another regulated stock exchange has been in operation in Germany, namely the Berlin-based Tradegate Exchange. With effect from 4 January, the former OTC trading platform has been awarded the status “regulated market” as defined in the MiFID.
Deutsche Börse AG has acquired a 75-percent interest plus 1 share in Tradegate Exchange GmbH, the stock exchange operator. Deutsche Börse AG also holds a 5-percent stake in Tradegate AG Wertpapierhandelsbank, one of the market makers on the Tradegate Exchange. This transaction was closed last Friday. Deutsche Börse has the option of gradually increasing its stake in Tradegate AG to a maximum of 20 percent. The two members of the Management Board of Tradegate Exchange GmbH have been appointed.
“We want to continue the exceptional success enjoyed by Tradegate and expand this retail business further as a regulated exchange in Europe. With trading hours from 8.00 am to 10.00 pm, the lowest trading costs among its peers, and functions and order types geared towards private investors, the Tradegate Exchange has significant advantages over its competitors”, said Jochen Thiel, member of the Management Board of Tradegate Exchange GmbH and Executive Director at Deutsche Börse.
Thorsten Commichau, who is also member of the Management Board of Tradegate Exchange GmbH, looks back at the rise in trading activity during the first week of trading in 2010: “On our first day of trading alone, around 5,000 more trades were concluded than the daily average in December 2009. The number continued to rise during the first week of trading.”
From 2001 to the end of 2009, the market share and trading activity of TRADEGATE, which was formerly an OTC trading platform, enjoyed ongoing and significant growth. From just under 40,000 trades in 2001, the number had risen to around 2.4 million by the end of 2009. In December 2009, just under 175,000 trades valued at 835.3 million euros were concluded on the Tradegate platform. The average order size in December was around 4,800 euros, which underscores the Tradegate Exchange’s focus on retail business.
Deutsche Börse’s majority interest in Tradegate Exchange GmbH will serve to expand its trading offering for private investors and strengthen its position in the European retail market; with the Tradegate Exchange, it will be operating a platform which offers particularly online brokers new trading functions, longer trading hours and innovative order types at attractive prices. Deutsche Börse AG’s participation will give market participants additional access and settlement alternatives based on existing infrastructures and processes, providing the ideal conditions for them to integrate Tradegate Exchange.
About the Tradegate Exchange
The Tradegate Exchange is a stock exchange specialized in executing private investor orders. Currently, predominantly online banks from Germany, France and Austria are connected. The Tradegate Exchange provides information for private investors on the current market situation and enables them to trade in selected equities, bonds and funds at the latest prices every trading day from 8.00 a.m. to 10.00 p.m., thus also outside the trading hours of other European exchanges. Orders are usually executed immediately and in full. Tradegate Exchange has the lowest transaction fees of all European trading platforms. At present, 4,000 equities, 1,500 bonds and 1,000 funds can be traded on this exchange. As a market specialist on the Tradegate Exchange, Tradegate AG is active in all equity classes and ETFs. Other market specialists quote bonds and funds. Since the beginning of 2010, Tradegate Exchange has enjoyed regulated market status as defined in the MiFID. The Tradegate Exchange is the first and at present only exchange to offer order types of particular interest to private investors, such as one-cancels-other and trailng-stop-limit orders, thus underpinning its leading position as retail exchange.
About Deutsche Börse
Deutsche Börse Group is one of the world’s leading service providers for the securities industry, with a product and service offering for issuers, investors, intermediaries and data vendors. The Group covers the entire process chain from trading, through clearing, to settlement and securities custody. Furthermore, Deutsche Börse offers market data, indices and analyses and is a service provider for the development and operation of IT systems. Deutsche Börse Group is one of the world’s largest stock exchange organizations.
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